The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Stanley can extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Stanley lease extension. Putting off that expense today simply increases the price you will eventually be required to pay to extend the lease.
Leasehold properties in Stanley with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with procure Stanley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of lengthy discussions with the landlord of her studio apartment in Stanley, Amy initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was finalised in July 2011. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. G Rivera who, having was assigned a lease of a studio flat in Stanley in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Stanley with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 invoiced per annum. The lease ran out on 14 April 2094. Taking into account 69 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last June we were called by Mr Harrison Bell , who took over the lease of a studio apartment in Stanley in May 2011. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparative residencies in Stanley with an extended lease were worth £285,000. The average amount of ground rent was £55 collected annually. The lease concluded in 2105. Given that there were 80 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.